11-Oct-2023
2 mins read
A Directive from the Top
In a significant move, the Reserve Bank of India (RBI) has issued a directive to the Bank of Baroda, one of the leading state lenders, urging it to halt the onboarding of new customers via its digital banking platform – the ‘BoB World’ app. This comes in the wake of specific supervisory concerns highlighted by the central bank regarding the manner in which the bank had been enrolling its customers onto this mobile application.
Bank of Baroda Responds
Reacting promptly to the RBI’s directive, Bank of Baroda issued a clarification. The bank acknowledged that while they have already implemented corrective actions based on the earlier highlighted concerns, they are in the process of taking further steps to seal any potential gaps. Their statement emphasised the bank’s commitment to collaborating closely with the RBI to address all concerns promptly and satisfactorily.
RBI’s Conditions for Future Onboarding
The central bank has made it clear that the Bank of Baroda can resume onboarding customers through its app only after all the observed deficiencies have been rectified. The bank will need to strengthen its processes to the satisfaction of RBI before they are permitted to proceed.
No Interruption for Existing Customers
For the bank’s existing clientele, it’s business as usual. RBI’s release assured customers who have already been enrolled through ‘bob World’ won’t face any disruption due to this suspension.
Past Controversies
Earlier this year, media reports stirred the waters by suggesting that BoB World had been meddling with customer accounts. These reports hinted at the bank using unrelated contact details to artificially boost the number of app registrations. Addressing this controversy, the bank denied these allegations, emphasising the security measures in place that prevent one mobile number from being linked to multiple accounts.
Bank’s Assurance on Uninterrupted Services
Existing customers of Bank of Baroda can breathe easily. The bank has given assurances that they will not face any disruption and can continue to enjoy uninterrupted services on the app. Furthermore, the order does not impact any of the bank’s other digital banking channels like Net Banking, WhatsApp Banking, and ATMs, among others.
The Bank of Baroda vouched for the security and robustness of their mobile banking app. They stressed their continuous efforts and significant investments in technology over the years, aiming to offer their customers a smooth and secure digital banking experience. As the situation unfolds, it will be interesting to see how the bank manages to navigate these regulatory waters and restore full faith in its digital services.